Originally published: 16/03/2018 16:47
Publication number: ELQ-29854-1
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Modelling Expenses - Spark Financial Model

This video goes through some examples of some expenses within the model.

The video firstly covers direct expenses. One of the direct expenses for a coffee sale is the coffee beans and milk used to make the coffee. This should be categorized as 'materials.' This categorization is to help you understand your outputs later, so there's no right or wrong answers here. The cost is linked to the number of products sold, more specifically, coffee. Let's say the coffee beans and milk cost a dollar per coffee, with this price rising at the same rate as coffee at 2.5% per year. Inputting this is all you need to do for direct expenses. You should go through each of your products, and think about the direct costs of delivering each additional sale. Next, the video goes through indirect expenses to show you what to model and how to model them.

The video uses a screen-sharing method to take you through this section of the model in an explanatory style, to help you when it comes to filling out your own.

If you'd like to purchase the model, you can do so here:

Length: 2 minutes 40 seconds

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